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Warren Buffett says bond investors worldwide face a 'bleak future'

FILE PHOTO: Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc's annual shareholder meeting in Omaha, Nebraska, U.S., May 4, 2019. File Photo (REUTERS)Premium
FILE PHOTO: Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc's annual shareholder meeting in Omaha, Nebraska, U.S., May 4, 2019. File Photo (REUTERS)

Buffett used his annual letter to investors to assure he and his successors would be careful stewards of their money at Berkshire

Warren Buffett in his annual letter to Berkshire Hathaway shareholders on Saturday said bonds are not the place to be in these days, adding that fixed-income investors worldwide face a bleak future.

Buffett bemoaned fixed income as an investment, saying that "bonds are not the place to be these days." The income from a 10-year U.S. Treasury bond fell 94% from a 15.8% yield in September 1981 to 0.93% at the end of 2020.

"In certain large and important countries, such as Germany and Japan, investors earn a negative return on trillions of dollars of sovereign debt," Warren Buffett added.

"Fixed-income investors worldwide – whether pension funds, insurance companies or retirees – face a bleak future," the letter said.

“Risky loans, however, are not the answer to inadequate interest rates," hesaid.

Buffett used his annual letter to investors to assure he and his successors would be careful stewards of their money at Berkshire, where "the passage of time" and "an inner calm" would help serve them well.

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